Data table Activity Materials handling . $ .... Assembling Painting Budgeted Cost of Activity Cost Allocation Allocation Base Rate 270,000 Number of parts 0.90 $ 2,300,000 Direct labor hours $ 13.00 190,000 Number of painted desks $ 5.00 McKnight produced two styles of desks in March: the Standard desk and Unpainted desk. Data for each follow: Total Units Product Produced Total Direct Materials Costs Total Number of Parts Total Assembling Direct Labor Hours Standard desk 5,500 $ 43,400 120,000 5,700 Unpainted desk 3,000 $ 50,900 30,000 700 st Un Print Done I - X Requirements 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. 2. Premanufacturing activities, such as product design, were assigned to the Standard desks at $5 each and to the Unpainted desks at $3 each. Similar analyses were conducted of post-manufacturing activities, such as distribution, marketing, and customer service. The post-manufacturing costs were $23 per Standard and $22 per Unpainted desk. Compute the full product costs per desk. 3. Which product costs are reported in the external financial statements? Which costs are used for management decision making? Explain the difference. 4. What price should McKnight's managers set for Standard desks to earn a $41 profit per desk? Print Done S W McKnight Corp, manufactures computer desks in its Rochester, New York, plant. The company uses activity-based costing to allocate all montering conversion costs direct labor and manufacturing overhead) advies and d (Click the loan to view the activity areas and follow Read the requirements Requirement 1. Compute the per-unt manufacturing product cost of Standard desks and Unpainted desks (Complete all input feids Enter a for any amounts Round your answers to the r Direct materials Materials handling Assembling Standard Desk Unpainted Desk Painting Total manufacturing cost Number of units Manufacturing cost per unit Requirement 2. Premanufacturing activities, such as product design, were assigned to the Standard desks at $5 each and to the Unpainted desks at $3 each Similar analyses were conducted of post-manufacturing actives such as ruder marketing, and customer service. The post manufacturing costs were $23 per Standard and 522 per Unpainted desk. Compute the full product costs per desk Standard Desk Unpainted Desk Full product cost per unit Requirement 3. Which product costs are reported in the external financial statements? Which costs are used for management decision making? Explain the difference Next Requirement 3. Which product costs are reported in the external financial statements? Which costs are used formanagement decision making? Explain the difference. are reported in the financial statements. Managers use for decisions such as pricing and product emphasis. Full product costs include the that are expensed as incurred for external reporting. However, these costs often are Requirement 4. What price should McKnight's managers set for Standard desks to eam a $41 profit per desk? Sales price per unit-standard desk